U.S. Is Expected to Forecast
$420 Billion Deficit

By

John D. McKinnon Staff Reporter of THE WALL STREET JOURNAL

Updated July 28, 2004 12:01 a.m. ET

WASHINGTON -- The Bush administration this week is expected to project that the federal budget deficit will reach $420 billion or more this year, a record but not-unexpected figure that could fuel Democratic attacks in the fall election campaign.

The administration predicted in February that the deficit would reach $521 billion -- an estimate that some observers on Capitol Hill and on Wall Street regarded as an exaggeration designed...